I'm in negotiation with a seller and after I tell her around what my offer will be, she mentions she still has a small mortgage on the property and if she sells too low, then the capital gains tax may wipe out her remaining profit.
I looking for the best way to purchase this property to minimize her tax and still get a good deal on my end. I'm open to being very creative and I believe she is too.
Some info on the deal, but not too many details as I haven't been through the prop yet.
PP- I'm looking to be all in(rehab, CC, purchase) around 40K
Mortgage- not sure how much is owed
Will rent for 900-1000/mo
Thanks in advance
Do a land contract type sale and pay her over a couple of years. She would need to check and see how many years she would need in order to make the numbers work.
She's either just blowing smoke, or uninformed. How much cap gain, or profit, could you have on a $30k or so sale? If you want real numbers you need to give: how much she paid, sales price, guess at improvements she made.
I do think she is uniformed, as am I. The tax may not be much, but if she has a 30K mortgage on the home and I buy for 40K, she may only get a couple grand. I currently don't know how much she paid, if she ever refi'd, or how much money she put into it. I only know she bought in 2001 and this has traditionally been a low income area.
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